Health insurance renewals are at their highest ever persistency levels. This rise is driven by higher share of new generation modular plans with attractive cumulative bonus and new-age features, a report revealed.
Customers are also increasingly becoming more aware about health insurance on account of growing incidents of lifestyle diseases such as diabetes, hypertension, cholesterol, asthma, heart diseases, and obesity, shows Policybazaar report. The report has further noted a 25 per cent increase in the share of customers with lifestyle diseases in its new business mix.
Consumer-friendly products
The past two years have seen a phenomenal rise in consumer-friendly products that build long-term value. There are now plans available that cater to each and every segment in terms of age, tier, pre-existing diseases and more, the report notes.
The pandemic has jolted a large number of people out of their inertia to buy health insurance and rethink how healthcare expenses are impacting their lives. Increasing incidence of lifestyle diseases has also made customers more conscious about their healthcare needs.
People aged 30 and above comprise the largest part of the consumer base (at about 80%) and are also the ones who are most likely to renew their policies as compared to the younger cohorts. Customers who hold family floater plans have shown higher persistency ratio than those with individual policies
Bonus cover
The new age bonus cover, which can increase the total cover up to 10x (even, unlimited cover in few plans) at just 10-15% increase in premium, motivates the customers to continue with the same plan. Moreover, this bonus cover gets added even if there is any claim
Customers who have old generation plans are also switching to new generation plans of the same insurer even at a higher price, instead of porting out. More and more customers are looking to upgrade their plans with better features at the time of renewal.
The report further shows that family floater policies show slightly higher renewals than individual covers. Meanwhile, policies above ₹10 lakh record higher persistency than lower coverage.
Jitin Jain, Head, Health Insurance, Policybazaar, says, “Renewals are at an all-time high because customers are beginning to see health insurance less as an obligation and more as an asset that grows with them. Modular products with cumulative bonuses and flexible riders are giving them reasons to stay invested year after year. That behaviour tells us something important: Indians now value continuity in protection.”
For all personal finance updates, visit here
